New York - 12-b-1 fees are named for the 1980 Securities and
Exchange regulation that created them.

The fees represent annual charges levied against the total
balance of a mutual fund's assets and are used to pay financial advisers and brokerage
firms who steer investors towards the fund.

Although these funds are not charged directly,
each individual investor pays for them as they reduce the overall investment returns of
the fund. The fees charged are separate from load or back-end commissions.

According to a recent study
by Lipper Analytical Services, approximately 60% of all mutual funds, including "no
load mutual funds" charge these fees.